Consider a Monopolist Who Charges a Single Price to All

question 96

Multiple Choice

Consider a monopolist who charges a single price to all of its customers. If this monopolist starts price discriminating, its output will ________ and its profit will ________.

• A)fall; rise
• B)fall; fall
• C)rise; fall
• D)rise; rise

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Definitions:

Return on Assets

A profitability ratio that measures how efficiently a company can generate profit from its assets.